Sika Ag · SIX:SIKA

Sika — Investor Day (2019)

14 slides from Sika's investor day presentation, 2019

1. Slide 1: Parex: Fast and Successful Integration

   PAREX: FAST AND SUCCESSFUL INTEGRATION PHILIPPE JOST HEAD CONSTRUCTION SIKA CAPITAL MARKETS DAY 2019

2. Slide 2: Parex Integration Status Overview

   PAREX INTEGRATION STATUS OVERVIEW  Closing on May 23rd  Operational reporting of Parex entities into Sika’s regional structure as of Day-1  100-Day action plan reviewed early September with all countries and first wins:  Fully Integrated Parex into Sika financial reporting process  Completed re

3. Slide 3: Parex Integration Across 23 Countries on Track

   PAREX INTEGRATION ACROSS 23 COUNTRIES ON TRACK SYNERGY PROFILE VARIES BY COUNTRY DEPENDING ON LOCAL STARTING SITUATION  Parex integration with multiple Parex Integration across 23 countries unique integration situations  Opportunity types vary More scale benefits Scale and scope benefits More scop

4. Slide 4: Synergy Lever Breakdown of CHF 100M in Bottom-Up Plans

   SYNERGY LEVER BREAKDOWN OF CHF 100M IN BOTTOM-UP PLANS CROSS-SELLING, OPERATIONS AND PROCUREMENT ARE KEY SOURCES OF SYNERGIES  Due to complementarity of Parex and Sika, the majotity of synergies are linked to cross- selling opportunities  Significant synergies in optimizing operational footprint 

5. Slide 5: Cross Selling: Access to New Distribution Channels

   CROSS SELLING ACCESS TO NEW DISTRIBUTION CHANNELS  In many countries, Parex has build a stronger distribution network compared to Sika over the past years  In addition, Parex has focused on specialized tile shops much more than Sika  The access to Parex network will enable Sika to sell selected S

6. Slide 6: Cross Selling: Access to New Distribution Channels (China)

   CROSS SELLING ACCESS TO NEW DISTRIBUTION CHANNELS (CHINA)  In China, Parex had created a distribution network with > 100,000 POS  Official launch of Sealing & Bonding products in China on September 9th of first selected products  First targets by year end 2019 is to roll-out first products to: 

7. Slide 7: Cross Selling: Joint Direct Sales and Tenders with Complementary Product Ranges

   CROSS SELLING JOINT DIRECT SALES AND TENDERS WITH COMPLEMENTARY PRODUCT RANGES  Project sales is a traditional strength of Sika’s sales organization  With additional products from the Parex portfolio, Sika’s sales organization was able to generate additional sales on many projects already.  Main

8. Slide 8: Cost Savings: SG&A Costs, Procurement, Formulation and Operations Costs

   COST SAVINGS SG&A COSTS, PROCUREMENT, FORMULATION AND OPERATIONS COSTS  Largest area of quick cost savings are in procurement  Savings > 12 M CHF secured as of today  Further negotiations with current suppliers ongoing  Harmonization of raw material suppliers under review  G&A costs under revie

9. Slide 9: Reformulation Driven Product Cost Reductions

   REFORMULATION DRIVEN PRODUCT COST REDUCTIONS DIFFERENT PRODUCT AND MARKETING FOCUS LED TO DIFFERENT FORMULATION COSTS FORMULATION COST DIFFERENCE FOR SELECTED PRODUCT COUPLES KEY HIGHLIGHTS Formulation costs (CHF/MT) -11%  We have been able to generate some significant savings due to formulation co

10. Slide 10: Operations Footprint – Quick Wins

    OPERATIONS FOOTPRINT – QUICK WINS STARTED TO UTILIZE MORE EFFICIENT FOOTPRINT  Started to produce Sika Products in Parex factories and vice-versa within weeks of closing, allowing for savings in freight and generating efficiencies in production processes  Chile, Argentina, China, Singapore, Philip

11. Slide 11: Operations Footprint – Improved Set-up

    OPERATIONS FOOTPRINT – IMPROVED SET-UP ABILITY TO COMBINE FACILITIES AND RE-ALLOCATE PRODUCTION RESULT IN EFFICIENCIES  Overall Parex plant network nicely complements Sika plant network  We have identified over 20 operations moves that allows us to optimize our production footprint, resulting in s

12. Slide 12: Conclusions

    CONCLUSIONS  Overall excellent progress in integration of Parex into local Sika entities  Excellent cooperation between local Parex and Sika teams  Very similar culture based on local responsibilities and entrepreneurial spirit confirmed  Run-rate synergies of CHF 100 Millions confirmed based on

13. Slide 13: Thank You for Your Attention

    —— THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST By

14. Slide 14: Forward-Looking Statement

    FORWARD-LOOKING STATEMENT This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘expects’, ‘believes’, ‘estimates’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘future’ or similar expressions or by discussion o

Sika — Investor Day (2019) on 6ix